January 2024 DeFi Report Released
The cryptocurrency industry had a promising start in 2024, with a strong uptrend during the first week. After the approval of the Spot Bitcoin ETF, there was a short surge in the market, but since then, there has been a significant correction in value.
Bitcoin and other major altcoins have been moving sideways for over a week, indicating a cooling-off period in price action. The approval of the Spot ETF trading is a significant milestone for the crypto industry, and with the Bitcoin halving approaching, this year is expected to be crucial.
In the DeFi category, there has been a minor change in valuation. The Total Value currently stands at over $120 billion, showing a 2.5% increase month-on-month. Additionally, the total number of users has also seen a decent increase.
Top tokens in the DeFi category have recorded minor changes, suggesting a shift in investor interest. Newer chains have seen significant price action this month, highlighting the growing competition for innovation and technology in the industry.
The Decentralized Financial (DeFi) system is expected to gain significant traction this year, with major events lined up in the coming months. The primary goal is to achieve a valuation of $150 billion within this year.
Despite the minor change in valuation, the DeFi category has experienced significant fluctuations, indicating mixed sentiment in the crypto space. The article provides a detailed explanation of the top three sub-parts of this category.
Dexes, or decentralized exchanges, have shown stable growth this month, with a 4.29% increase in valuation. Uniswap and Curve DEX, the category leaders, have performed well, adding 11.96% and 10.72% to their portfolios, respectively. However, PancakeSwap has seen a negative trend with a 5% decrease in valuation.
Lending plays a vital role in the DeFi ecosystem, accounting for a significant portion of the Total Value Locked (TVL). The current value of Lending stands at $22.46 billion, showing a 2.90% increase from the start of the month. The LayeBank chain has been the top gainer, with a 31.19% increase month-on-month, while the Radiant chain has recorded the highest loss of 21.01% among the top chains.
The Liquid Staking category has seen a 4.01% increase in valuation this month, starting at $33.417 billion and ending at $33.717 billion. Eight out of the top 10 chains in this category have recorded a positive month, with Swell Liquid Staking being the top gainer with a jump of over 40% in valuation. Marinade Liquid Staking has recorded a loss of 8.37% among the top 10.
In terms of top performers in January 2024, the Uniswap chain has experienced the highest gain of approximately 10%, while JustLend has recorded a loss of 5.50%.
Lido Dao (LDO), the leader of the DeFi category, has added $290 million to its valuation, a 0.19% increase over the previous month. AAVE has seen a decent jump of 4.02% in TVL, while Maker Dao (MKR) has lost its second spot on the table with a decrease of over 3.5%. JustLend has recorded a loss of 5.05%, and Uniswap has recorded the highest gains of 10.58% among the top 10 chains.
Overall, the DeFi system is expected to gain significant valuation this year, as it has shown consistent growth in the past three months. The category has seen an increase in daily transactions, indicating a rise in investor interest. With the uncertainty surrounding centralized exchanges, the market volatility is expected to drive adoption in the DeFi market.